News · Super Micro Computer, Inc. (SMCI) · Technology

Super Micro Computer falls after insider sales filed

Session of October 9, 2026 · Published October 12, 2026 · 4 min read

What happened

On October 9, 2026, Super Micro Computer (SMCI) fell 2.1% after filings showed two insiders sold 100,000 shares on October 7 at a weighted average price of $45.02. The filings, reported by Defense World, identified the sellers as CEO Charles Liang and director Chiu-Chu Liang (Sara Liu). The transaction was worth $4,502,000 and left the insider holding 337,506 shares. Trading volume on the day was 0.7 times its 20-day average and the size of the move was 0.4 times a typical daily move for this stock, a combination consistent with an ordinary session.

Closing price over the last 30 trading sessions. On October 9, 2026, SMCI closed at $41.86, down 2.1% on the day and 12.9% higher than 30 sessions earlier.

The S&P 500 rose 0.6% and the Technology sector median rose 0.8%, leaving the stock 2.9 percentage points worse than the sector median. Market participants viewed the session as a routine reaction rather than an extreme market event. The stock has a beta of 2.87, reflecting that it tends to move more than the market.

How big was the move

The stock closed at $41.86 after opening 1.4% above the previous close. Over the last five sessions the stock fell 4.2%. Market value stood at $27.07 billion. The two-day trading reaction after recent earnings reports has typically been muted; the typical two-day reaction after recent reports fell 1.1%.

Each bar is one day's price change; the outlined bar is October 9, 2026. A typical daily move over the past year was 5.8%, so the latest move equals 0.4 times that. Moves outside the dashed lines (about 11.6%) are unusual.

Although the single-day decline was modest relative to the stock's volatility, the gap between the company's performance and its sector on October 9 highlighted shorter-term weakness. The S&P 500 rose 1.1% over the five-session span while the stock lagged, underscoring the sensitivity implied by its beta and recent swings in investor sentiment.

The technical picture

Technically, the stock was 1.7% above its 20-day moving average, 10.1% above its 50-day moving average and 29.5% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had spent 42 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) read 54, a neutral reading between 30 and 70.

Closing price over the past year. SMCI ends the period 27.8% below its 52-week high, above its 50-day average ($38.00) and above its 200-day average ($32.32).

Momentum measures were mixed. The shares were 28.8% below the 52-week high. Change over one month rose 12.0% and change over three months rose 51.3%, while change over one year fell 28.7%. Volatility was 83% annualized over 60 days, higher than 56% of its own readings over five years, which helps explain why a normal-sized move can still produce noteworthy short-term percentage changes.

Fundamentals and valuation

For the four quarters through June 30, 2026, revenue was $39.06 billion, having grown 77.8% from a year earlier, and diluted earnings per share were $3.26, which rose 183.5% from a year earlier. Gross margin was 10.8% (a year earlier: 11.1%) and operating margin was 7.1% (a year earlier: 5.7%). Free-cash-flow margin was 17.8% and return on invested capital was 9.7%. The balance sheet showed net cash of $841.0 million, while share count over one year increased by 11.6%.

Quarterly revenue by period end. The latest quarter brought $11.1B, 93.2% more than the same quarter a year earlier.

On valuation metrics the stock traded at 12.8 times trailing earnings and 9.6 times expected earnings, with a free-cash-flow yield of 24.7%. Versus its own history, the price to trailing earnings was lower than 86% of its own readings over the past five years (five-year median: 22.4 times earnings). Those metrics point to rapid recent growth with a valuation that, by some measures, looks relatively low compared with the company's own history.

Earnings and analyst expectations

The last report, on August 11, 2026, showed earnings per share of $1.70 against $0.92 expected, 84.2% above estimates, and marked the third consecutive quarter of beating estimates. The average surprise over the last four reports was 38.6% above estimates. The company is scheduled to report next on November 3, 2026. Typical two-day reaction after recent reports fell 1.1%.

Diluted earnings per share by quarter. The latest quarter shows $1.68, against $0.31 in the same quarter a year earlier.

Analysts' consensus rating across 25 analysts was Hold, with 36% assigning a Buy or equivalent rating. The consensus price target was $41.44, which is 1.0% below the closing price. That split between solid recent earnings beats and a cautious analyst stance helps explain the stock's mixed PromtFinance profile: Growth scored 93 (Exceptional) but Quality, Revisions and Stability scored very weak levels.

What to watch

November 3, 2026: next quarterly report date.
August 11, 2026: last report — earnings per share of $1.70 against $0.92 expected, 84.2% above estimates.
October 7, 2026: insider sales of 100,000 shares at a weighted average price of $45.02 per share for a transaction value of $4,502,000.
Price to trailing earnings at 12.8 times and Price to forward earnings at 9.6 times expected earnings.
The stock has been 42 consecutive trading days above the 200-day average.

Full SMCI analysis: scores, chart and financials →